Pebblebrook Hotel Trust (NYSE:PEB)

CAPS Rating: 5 out of 5

Recs

1
Player Avatar nrlbuild (98.10) Submitted: 10/6/2011 2:09:19 PM : Outperform Start Price: $14.68 PEB Score: +34.78

John Bortz, hotel industry veteran, formed PEB to take advantage of hotel property opportunities created by the real estate bubble and subsequent crash. They are buying actual properties, supposedly at a good discount. Supposedly the property values plus cash minus debt establishes a share value of around $20...it is trading around $15 at this time. The company pays a 3% dividend which should increase over time as they are a REIT. Throw in possible share appreciation to $35 and I am in.

Member Avatar nrlbuild (98.10) Submitted: 10/6/2011 2:59:03 PM
Recs: 1

After some more reading looks like a book value of around 17.50$ may be more accurate than 20$. But this is a moving target, and the possible appreciation to $35 remains. With current price at $15 I am still good.

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